Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1887-06-14

I announcement OF these failures an organ.
| ,zed fort wss made by prominent houses
| like O'DOnObue, Gruner, aud Crossmln, 30
| sustain the market. and they succeed 4 In
| causing rally OF about cent all arouni.
The inilure OF II. q. Arnold a. Co. at
| lractCd the most attention, a. they are The
most prominent house In the trade, buy II
vas generally anticipated. The senior
member Of The firm WIS caught in 1882 by
| The collapse Of one OF the largest deals ever
attempted in collie, and was compelled 10
SUSPEND for over a million dollars. He
.iartedf In business again. however, and was
successful IN all his ventures. On August lst
last be formed partnership with his son.
and since then they have done a strictly
commission business. He ascribeS his
| failure TO the fact that his customers we're
40 laf away that II was impossible to reach
them in time TO obtain sufficient margin 81
meet the decline. lie could mike no state.
nirnt Of hls liabilities and said he could not
eay ANYTHING about the chances Of rcsuming.
Out.in, Is claim that the nrm Ia. been car.
rying $50 coo bags Of coffee for RIO de
JancirO operators known A. the BrlZilI1n
pariy. II I. estimated that the liabilities
win amount 10 over 21,000,00O
Tie extreme decline for the past two
w'CL, Is from 2l.30 two weeks ago 70 lj
cents to-day. or over 81 cents per pound.
There WsS Ion talk OF trouble In banking
ciic,o, az the result or the panic, but a the
banis only carried 30 per cent. on the
market value Of coffee II IS hard 10 see how
any Of item could have been involved.
Mackay & Small. ore OF the suspended
firms, are supposed TO have liabilities o.
S200,0OO. The liabilities n the other firms
are small. Norton, Weyi d Bevan
state that their suspension wa3 due to
the existing depression in prices, augment
ed hy the failure OF other firms In the trade.
Mackay & small say their stOpplge is In no
wise due TO the fact OF their being "iOng"
Of the market. ~ commission men their
transactions run both WAYS, and they may
be regarded n being both long and short
at .thC same time, and losing both ways.
rhe Inability OF thci. clients to put up the
marginal fund quick enough rendered it
impossible for them to meet the demands OF
the market. aud in consequence they were
compelled 10 suspend.
TIE fail in coffee represents a drOD OF
about thirty cents on the dollar. Nothing
hut vast capital was able to withstand the
call created by such a difference with large
OrdCis out. II Is feared that other houses
will 90 under. The market rallied sharply
after the last failure was announced, and
clos, d comparatively strong. Tee day will
always he remembered in coffee circles.
The scene, on the floor OF the exchange
were the most remarkable that have ever
been witnessed there, and the confusion
w3s 80 great that an outsider would hardly
realize that the sales Of the day were twice
rs large y on any preyiOu. day in the his
tory of the exchange. Yet such was the
fact. for $4,000 bags were sold. 29j,0)0
lag, being sold after the second cdl.
In commenting on the days furry and
the uric' obtained one broker said that the
malktt broke through its own weight. as
Arnold & Co. kept buying and buying I'LL
they dare not unload for fear ~ knocking
a hole in prices. Now that the firm has
suspended" continued the speaker, d" the
firms from whom Arnold Il Go. bought will
balc 10 take their coffee back at the average
prices OF to-day, aud the prices are better
than coul1 have been obtained by the firm
had hey un'oided their holdings on the
market"
July coffee before Arnold's failure was
announced was quoted at S1j.2j, after the
advancement at *lj. and at the close Of
The EXcha1ce mt SlG.l0. Other months
were ahccico in Ike manner with two eX-
options. Tie closing future prices were
nighcr titan The prices before the failure.
June coffee was naturally the most helyily
,G,cied, dropping 20 points and only raj
Yin. - points at the closing.